 2014-07-09 |
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Provided by: Juheng Network
Taiwan's leading tape manufacturer, YC Group (4306), reported a slight decrease in consolidated revenue for June, which fell by 6.62% year-over-year to NT$1.734 billion. However, for the first six months of this year, the cumulative revenue reached NT$10.017 billion, still showing a 3.88% increase compared to the same period last year.
Among the group’s subsidiaries, ACHEM (1715) reported a consolidated revenue of NT$927 million in June, up by 3.02% from the previous year. The cumulative revenue for the first six months of the year was NT$5.58 billion, reflecting an 8.74% increase year-over-year.
YC Group explained that ACHEM conducted a mid-year inventory check in June, which resulted in 3 to 4 fewer shipping days. This led to a temporary decline in June’s performance, although the second-quarter revenue still grew by 6.9% compared to the first quarter. The overall performance for the first half of the year showed growth primarily due to stable export tape orders and increased shipments of automotive and PVC tapes, indicating that the benefits of new production capacities are continuing to materialize.
Another subsidiary, Xinzhou Global (3171), achieved a consolidated revenue of NT$153 million in June, an impressive 219% increase year-over-year. The cumulative revenue for the first six months of the year was NT$866 million, also showing a 219% increase compared to the previous year. The growth momentum for Xinzhou Global is attributed to the improved operational efficiency in Taiwan following the integration of its packaging materials business, and the gradual increase in profitability for the "Pack Master" business in China.
Looking ahead to the third quarter, YC Group is optimistic. With the expansion of new production capacities at ACHEM and the continued growth of Xinzhou Global’s "Pack Master" materials business in both Taiwan and China, along with the full-scale operation of ACHEM Petrochemical’s production facilities, the group expects to benefit from the growth of its three subsidiaries, leading to stable growth in revenue and profitability.
For ACHEM’s specialized products, the new distillation tower for EBR products under 20 nanometers has been completed, with expansion starting in April. The performance improvements are becoming evident, and significant growth is anticipated in the second half of the year once major customer certifications are completed and shipments begin. In terms of new product development, high-margin automotive water-based PVC tapes and eco-friendly PE tapes are currently in the trial production and sample testing stages. It is expected that ACHEM’s performance in the third quarter will see a return to high levels with increased shipments of PVC tapes (automotive and protective types) and the launch of new products.
Additionally, ACHEM Petrochemical’s acrylic acid plant officially began trial production in June. Full-scale production is expected to enhance the benefits of vertical integration within the industry. |
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